Law for Business Managers

Law for business managers

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1............................................................................................................................................3
Explain the role of sole director to Gemma............................................................................3
PART 2............................................................................................................................................5
Advise Gemma on the process of dismissal and as to whether she is lawfully able to do this...5
PART 3 ...........................................................................................................................................8
Advise given to solve dispute to Gamma...............................................................................8
Now she seeks for opinion available over solving problem with Precious Time Limited.
Gemma would like to work with them in future. ..................................................................8
CONCLUSION .............................................................................................................................10
REFRENCES ................................................................................................................................11

INTRODUCTION
Laws for business managers are the laws that has been helping in making management to
do work as per the framework prescribed under business law or corporate law. It contains those
laws which helps in developing various process of management to work with ease and in more
strict manner. Laws has been helping in forming set of rules to make organization achieve its
goals and objectives. Such laws makes corporation to achieve productivity and consistency in
processes. Such laws makes impact upon management within an organization through enhancing
strategies with the laws given for it (Tsuruta, 2020). Business laws makes management to
improve its working that makes decision making to improve. Scope of these laws is wider in a
way that it covers various kinds of characteristics that impacts organization directly. Nature is
dynamic that makes over all business process to be enhanced by impacting both public and
private organization. In this file three parts are there which explains about sole director,
employment contract and dispute solving mechanism.
MAIN BODY
PART 1
Case scenario: In this case Gemma has open new organization named as Clean Machine
Limited which supply protective equipments in relation to small business in an country of
Bedfordshire. She is the sole director of the organization but is not aware about role with
responsibilities. Neither hold knowledge about legislative provisos in relation to her role. .
Explain the role of sole director to Gemma
Company is an artificial personality which has its common seal. It has the perceptual
succession which simply means that the members may come and go but company shall remain
forever till its winding up. It is required to follow all the statutory legislative requirement which
is set out in the Companies Act, 2006 in order to prevent any legal consequences.
Directors play an important role in the success of the company. As the corporations are
regarded as the separate legal entity which is distinct from its employees, so it is the members of
the company who determines the success and growth of the company/ in broader sense, the
directors are the one who has primary responsibilities in order to oversight the business of
company (Tsuruta, 2020). When the company is run by the sole director, the responsibilities and
duties are on the shoulder of one person as it has the role of taking all the important decisions.

There are many roles of director which are set out in the Companies Act of 2006 under
section 171- 177. These are discussed below- To act within the power- Under Section 171 of Company Act, 2006 , the director is duty
obliged to work in accordance with its constitution. It includes the memorandum of
association and articles of association. The director has to role to exercise its power for
the aim which is conferred under the Constitution of company. To promote success of company- Section 172 is the provision which imposes one of the
essential duty which is to act in the good faith and always promote success of company.
This duty mainly applies to all the decisions which it makes and the director must ensure
that it thinks about an impact which may be placed after its decision. To exercise independent judgement- Section 173 imposes the duty to act independently.
The director has many expertise who may advice it but it must use its independent
judgement while making the final decision rather than just following the decision blindly
(Tikotsky, Pe'er and Feldman, 2020). To exercise reasonable skill, care and diligence- Section 174 is a common law
provision which codifies the duty of skill and care. The director is required to carry its
functions competently and carefully. There is a two stage test to determine whether the
director is acting reasonably or not. The objective element provides that there must be
minimum standard which is to be expected by director and if it has a specialised
knowledge, then higher standard shall be used to judge. To avoid conflict of interest- It is the important role under section 175 that the director
should avoid such situation in which it has an interest which is in conflict with interest of
company (Ramachandran, Alam and Goh, 2020). Not to accept benefit from any third party- The director under Section 176 is duty
obliged to not accept any kind of benefit from the third party by virtue of the reason that
it is the director. It simply means that it must not fall foul of its duty so it is important
that director must ensure that it has some hospitality and gift related policy.
 To declare any interest in proposed arrangement or transaction with the company-
Under section 177, the director must ensure that it is aware of the fact that there is no
conflict in the proposed transaction before entering into one. The director is also required